Making a website has become an essential aspect of running a business, starting a freelance job, or becoming a creative professional of any kind. Understandably, this has given some boost in things like web hosting, which is now quite a huge industry, all things considered. Like everything else, web hosting trends have seen a lot of changes in 2021, many of which are driven by innovation and other factors.
While the number of hosted websites has dropped significantly in 2020, the number will remain at around 1.2 billion in 2021. With all that said, and without going into too much detail now, it’s important to note that of these hostnames, only about 200 million belong to actually active websites. This number has remained more or less stable, indicating that hostnames that are not part of active sites are being phased out, while active sites remain as they are.
Another thing to watch out for is the size of the industry itself. One way to look at this is to analyze the number of web hosting services currently available. Back in 1969, when web hosting was first widely available, there were only four companies offering it. Over the next five decades, the industry exploded, with 126 million mainframes available to users in 2001, suggesting that the industry eventually grew exponentially.
This is a statistic from 20 years ago, which means the current figures are likely to be much higher, although it also shows that a large proportion of web hosting services are underperforming due to the relatively small number of active websites. Most web hosting providers probably only sell domain names and are not responsible for the majority of active websites that users tend to visit. Anyway, if you look at the revenue that the industry has started to generate, they seem to be making a profit.
What’s more, from a financial standpoint, the industry is also growing. Our latest estimates are from 2019, and in that year, the total size of the industry, and all the companies operating within it, was estimated to be around or slightly above $56 billion. That. Suffice it to say, there has also been a fair amount of exponential growth in this area, which is expected to grow considerably in the coming years.
Experts suggest the industry will more than triple in value by 2027. In 2019, the industry was estimated to be worth $56.7 billion, a figure that is expected to grow to well over $171 billion by 2027, which is likely to match the number of websites people try to create more or less regularly. This will undoubtedly drive growth, and based on current trends, this number is likely to be reached sooner.
The forecast is based on the assumption that the industry will grow at an annual rate of 15.5%. This may seem optimistic, but it’s based on hard data, and it would be surprising not to see this level of expansion, as demand for web hosting is at an all-time high and the odds are high that it will start to dwindle Small any time off.
However, one thing people might want to keep in mind is that dedicated hosting is by no means a global standard. Quite the contrary, the lion’s share of the industry belongs to shared hosting services and the like. In fact, about 37.4% of the industry’s total revenue is owned by shared hosting providers, which is understandable when you consider that shared hosting tends to be a lot cheaper than dedicated hosting, and most first-time website owners want to choose that option because of its economic advantage.
We may also start to see some big changes from the major players in the web hosting space. Over 35% of web hosting revenue is in North America, but the fastest growing countries in this space are actually the UK and Germany. So it’s not unfair to say that Europe is likely to overtake North America as the location of the most dominant web hosting companies due to the geographic growth rate in terms of web hosting revenue etc.
Virtual Private Servers is a term used to describe a segment of the web hosting industry that has had a particularly easy time in terms of growth. The total value of the industry is expected to exceed $8 billion by 2026, so this is an area most people want to focus on.
The pandemic has clearly created a higher demand for web hosting as many businesses shift to e-commerce and other online operating models. This could become the new normal as people get used to doing most of their work online rather than leaving their homes, a trend that’s also happening in other industries. Check out the charts and infographics below to learn more, courtesy of FirstSiteGuide.
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